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The promoter’s stake is currently seen at 28.2 percent and some institution have shown interest in buying this stake, sources told CNBC-TV18.
ICRA Research has come out with its report on Rao Committee. The KUB Rao committee report on gold loan companies (GLCs), released by the Reserve Bank of India (RBI) on January 2, 2013, recognises the need for strengthening the GLCs‘ processes.
CNBC-TV18's Gopika Gopakumar reports that the Reserve Bank is now internally debating on banning banks from selling gold coins.
In a bid to futher tighten regulations the Reserve Bank of India (RBI) on Friday asked banks to bring down credit exposure to a single non-banking finance company (NBFC),doing business of gold loans, from existing 10% to 7.5%. The regulator has given maximum six months to implement it.
Shares of gold loan companies were down in the morning trade after the Reserve Bank of India (RBI) cut banks‘ credit exposure to gold loan from 10% to 7.50%. Kerala based Muthoot Finance was trading at Rs 128, down nearly 3% while Mannapuram tanked more than 5% to Rs 32.
Manappuram Finance shares were down 14% to Rs 39.15 and Muthoot Finance shares down 9% to Rs 148.45 in the first hour of trade following the RBI circular late Wednesday evening, restricting loans by gold finance firms to 60% of the value of gold jewellery pledged as collateral.
The Reserve Bank of India (RBI) on Wednesday directed non-banking finance companies engaged in gold loan business to maintain a loan to value (LTV) ratio of 60%. Those NBFCs whose financial assets consist of loans against gold jewellery to the tune of 50% or more will have to maintain 12% tier I capital.
